FROM:
Engineering
SUBJECT:
Title
Approve an Increase in City-Owned Contingency for the Downtown West Parking Structure Project (DE-24-132-SQ-01)
End
RECOMMENDATION:
Recommendation
Approve and authorize the City Manager to increase the city-owned contingency in the amount of $800,000.00, for a total contingency amount of $2,867,258.30 (Bid No. DE-24-132-SQ-01).
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COUNCIL GOALS:
• To invest in the City’s infrastructure (streets, sewers, parks, etc.) by providing for the development of new infrastructure.
• To invest in the City’s infrastructure (streets, sewers, parks, etc.) by focusing on relief of traffic congestion.
• To invest in the City’s infrastructure (streets, sewers, parks, etc.) by creating and promoting community through people, parks, and programs.
DISCUSSION:
On March 25, 2025, the City Council awarded the Design-Build Contract for the Downtown West Parking Structure Project (Project) to McCarthy Building Companies, Inc. The Project is currently under construction within the City of Fontana, bounded by Arrow Boulevard to the south, Nuevo Avenue to the west, Spring Street to the north, and an alley to the east. The parking structure is intended to support the planned downtown area, also known as the Forge District, including a future office building and hotel to be developed by others adjacent to the Project.
As part of the Project, the City is coordinating the undergrounding of existing overhead utilities within the project area. The original contract included a $500,000.00 allowance for the construction of facilities associated with utility relocations and undergrounding. Following receipt and review of the utility purveyors' relocation plans and requirements, the extent of the required work and associated costs became clearer, and it was determined that the cost of the utility work would exceed the original allowance. Additional costs have also arisen from unforeseen conditions encountered during project construction.
To address these additional costs and maintain progress toward completion of the Project, an increase in City-owned contingency is requested. The additional contingency would provide funding for utility relocation and undergrounding work exceeding the original allowance, as well as other unforeseen conditions identified during project delivery.
FISCAL IMPACT:
The fiscal impact associated with the approval of this item is $800,000.00 for the full term of the Design-Build Contract and is included in the FY 2026-2027 budget under Project 37600067-601-A-8331.
MOTION:
Approve staff recommendation.